Unemployment ends with a glimpse of a surplus, though 2021 will be a different story

SWITZERLAND

Federal authorities shouldered costs for reduced work, enabling the unemployment insurance (AD) to keep its balance sheet in the positive

Unemployment ends with a glimpse of a surplus, though 2021 will be a different story
Unemployment closes with a surplus, but 2021 will be different

Unemployment ends with a glimpse of a surplus, though 2021 will be a different story

Unemployment closes with a surplus, but 2021 will be different

The Unemployment Insurance (AD) ended 2020 with a surplus of 145 million francs, due to the federal government taking over the burden of reduced work. The current year, is expected to be quite different: a new debt is feared as a result of the rise in the number of people out of work due to the continuing pandemic crisis.

This decline, according to a note issued today by the State Secretariat for Economic Affairs (SECO), is likely to occur even if the Confederation continues to pay for short-time work allowances (ILR).

As a result of the crisis triggered by the pandemic, the federal government took on 10.78 billion for ILR last year through an exception contribution, in the absence of which the debt limit of the AD fund would have been «clearly exceeded».

The consequence of this would have been an obligation on the part of the Federal Council to draw up a reform for the financing of the AD.

Besides wanting to avoid an increase in salary contributions in the current economic situation, the Federal Council also wanted to preserve the AD’s function as an economic stabiliser, thus avoiding it incurring debts. In any event, SECO points out that the revision of the annual accounts of the AD is not yet final: the formal consent of the government is required after the accounts have been examined by the Federal Audit Office.

But as the crisis continues, AD expenditure will remain high during the current year, especially for ILRs. Even if the federal government were to continue to bear these costs, new debts can be expected due to rising unemployment.

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Ultime notizie: OnTheSpot
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